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Even after two decades writing about the personal finance aspects of housing, Elizabeth Razzi finds there’s always more to talk about. Buying and selling, improving, insuring, squabbling with the homeowners association -- whatever the housing topic, let this be your virtual back fence.

What's Not Covered by Flood Insurance?

This spring's downpours may have you wondering if it's finally time to buy a flood insurance policy. Often the purchase isn't a matter of choice -- a mortgage lender will require that you buy a policy if your home is within a designated flood area. But if you live in an area that is a lower risk for flooding, according to government maps, or if you don't have a mortgage, the decision to spend hundreds of dollars on a special flood policy is yours alone.

Damage to the part of your home most likely to be flooded--the basement--is eligible for only limited coverage. Much depends on whether you live in a designated flood zone, and whether your home was built before your community adopted floodplain ordinances that are required for participation in the federal flood insurance program. Generally, basements are covered for damage to utilities, including furnaces, hot water heaters, clothes washers and dryers, food freezers (and the food in them), circuit breaker boxes and other parts of the household electrical system. But the stuff that makes up a finished basement, paneling, linoleum, rugs and furniture, are not covered. Ask an insurance agent for details on what would be excluded at your home before you sign up for a policy.

Have you had experience submitting claims to the federal flood insurance program? Do you think the coverage is worth the expense?